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Inflation stayed in-line with Fed expectations, CoStar buys Matterport, office prices got discounted in 2024, crypto spiked over the weekend, and private investors are the main buyers of office

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Capital Markets

Headlines

• Core Inflation In Line With Fed Expectations

  The Federal Reserve's preferred inflation gauge, "core" Personal Consumption Expenditures (PCE) index, rose 0.3% from the prior month during January. On an annual basis, core prices rose 2.6% year-over-year, which was in line with expectations

• CoStar Completes Acquisition Of Matterport

  On Friday, CoStar Group, Inc. announced the completion of its previously announced acquisition of Matterport, Inc., a tech company that enables property owners, buyers, and renters to experience 3D tours and visualization of real estate

• Office Sales Prices Plummet 11% in 2024

  The average office sale price fell 11% YoY to $174 per sq. ft., following a steeper 24% drop in 2023. Since 2019, office values have plunged 37%. Class A CBD buildings saw a 22% drop in 2024

• Crypto Spikes After Trump Announces U.S. Strategic Crypto Reserve

  Bitcoin was up nearly 20% on Sunday after Trump revealed a January executive order on digital assets would create a stockpile of currencies including bitcoin , ether, XRP, solana and cardano

• Private Investor Transactions Dominate Office Landscape

  Since 2020, private-to-private investor transactions have dominated the office market, with private-to-private transactions making up 26% of deal volume. Pre-pandemic, private-to-private office transactions made up 15% of all deal volume with institutional-to-institutional previously being the highest transaction party type at ~16% (They now make up ~8% of transaction volume)

Deals Deals Deals

Sales

• Multifamily: Peterson Companies acquires 8001 Woodmont, a 322-unit luxury residential building in Bethesda, MD, from JBG Smith (JBGS) for $194mm

• Retail: Brixton Capital acquired Washington Square, a 216K SF shopping center in Petaluma, CA, for $68mm from Paragon Commercial Group

• Industrial: M2G Ventures acquired Inwood Design Center, a 14-building, 740K SF, mixed-use asset in Dallas, TX including retail, showroom and light industrial space, from Hines

• Industrial: Lincoln Property Co., and Walton Street Capital acquired a 226K SF distribution center for $44mm in Weston, FL from Manova Partners. The buyer assumed a $42mm loan with Nuveen and increased it to ~$79mm

• Life Sciences: Alta West Partners, Glendon Capital Management and a subsidiary of A2 Capital Management acquired 3401 Del Amo, an 83K SF R&D facility in Torrance, CA for $21mm

Debt

• Multifamily: Terra and Russell Galbut secured a $103mm inventory loan from Apollo Global Management for the newly completed Five Park, a 227-unit high-rise condo building in Miami, FL’s South Beach. The building has an estimated sellout of $1bn 

• Office: Hines and Ivanhoé Cambridge secured a $450mm SASB loan to refinance Texas Tower, a 1.2mm SF high-rise in Houston, TX. Wells Fargo and Morgan Stanley provided the loan package

• Senior Housing: Cambridge Realty Capital provided $43mm in HUD-insured Section 223(f) financing for four senior housing properties totaling 196 units across in IL, WA, and IA

Developments

• Retail: Centennial to redevelop Shops at Willow Bend in Plano, TX. The company plans to demo a portion of the mall with plans to include 800K SF of retail, and up to 965 residential units, a hotel, and an office building

• Multifamily: D.R. Horton acquires a 90-acre site in Westphalia Town Center within Prince George’s County, MD from Walton Global. Westphalia Town Center is a 480-acre master planned community, D.R. Horton will develop housing on the site

• Life Sciences: L’Oréal Groupe completed and has begun operations at its 250K SF scientific research center in Clark, NJ. The $160mm facility is L’Oréal’s largest outside of France

• Multifamily: AZW Realty acquired a 60K SF development site at 224 Third Avenue from Slate Property Group for $18mm. The company plans to build an 80-unit residential building on the site

• Industrial: Crescent Communities and GTIS Partners are working on approvals for a two-building 450K SF industrial development in Huntersville, NC

• Multifamily: MidPen Housing has broken ground on Oak Gardens, a 62-unit affordable housing community for veterans in Menlo Park, CA

Distress

• Office: Loan Star Funds acquired a troubled New York City loan portfolio from Flagstar Financial at a slight discount to par. The portfolio consists of eight sub-performing loans on New York City office and retail assets totaling $343mm

Capital Raising

• Data Centers: Principal Asset Management reached the final investor close for its Principal Data Center Growth & Income Fund, dedicated to the development of a portfolio of hyperscale data center projects across the U.S.. The Fund raised $3.64bn and is expected to capitalize more than $8bn of hyperscale development assets across the U.S. in partnership with Stream Data Centers

Meme Summary

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